Transaction in Own Shares

MONTANARO UK SMALLER COMPANIES INVESTMENT TRUST PLC

The Company announces that 100,000 Ordinary shares of 10p each were today sold
by the Company from the shares held in treasury at a price of £1.725 per share.

The resultant total number of Ordinary shares held in treasury by the Company
is 1,971,400. The number of Ordinary shares that the Company has in issue, less
the total number of Ordinary shares held by the Company in treasury following
this sale, is 34,546,178.

Enquiries:

Charles Montanaro - Montanaro Investment Managers Limited

Tel: [phone]

22.12.04